Pricing of premium economy class in airlines- Brand Management

Brand

Presented By: Krishna Bhawsar (007) Mayur Verma (008)

Piyush Kapoor (011) Roziwala Suraj (016)

Mgmt.

Agenda

• Insights• Model• Jet airways• Brand Management concepts• Analysis

Insights• Domestic Flights• 1 unit pitch economy gives PPe = 2971.33• International flights PPe falls by 24.89%• Flight duration PPe increase by 1.65%

• International flights PPe = 2381.7• Duration increase of PPe by 2.06%

• Jet Airways• 1 unit of pitch economy give Ppe = -84.4• Considering flight duration, Ppe increase by 17.9%

Jet Airways

• 1992, international flights in 2004• Mumbai based, second largest airline• 21.2% market share.• 300 flights daily • 68 destinations• Jet privilege• Fleet size, 117

Jet Airways – Value Proposition

• High level of experience to customers• Positive experience creates word of mouth• Quality, Comfort along with pleasant atmosphere• Special seating arrangements for disabled• Jet Privilege

Ads and Extensions

Differentiation

https://www.youtube.com/watch?v=jL_I6jhDkcQ

Model 1PPe = -11.75 + 10.04 air$PRICE_ECONOMY + 1 * air$PRICE_ECONOMY * air$PRICE_RELATIVE – 0.00013 * air$SEATS_PREMIUM + 0.273 * air$SEAT_PREMIUM * air$FLIGHT_DURATION – 0.1126 * air$FLIGHT_DURATION * air$PITCH_ECONOMY + 0.2 * air$FLIGHT_DURATION * air$WIDTH_PREMIUM – 0.0692 * air$WIDTH_PREMIUM * air$PITCH_PREMIUM

Model 2

PPe = 3113.24 + 1.26 air$PRICE_ECONOMY + 680.9 air$PRICE_RELATIVE -731.54 air$INTERNATIONAL + 15.94 air$SEATS_PREMIUM + 49.05 air$FLIGHT_DURATION -141.91 air$PITCH_ECNONOMY + air$WIDTH_PREMIUM

Model 3 (jet airways)

PPe = -83.67 + 1.34 * jet$PRICE_ECONOMY + 164.66 jet$PRICE_RELATIVE -0.04212 jet$SEATS_PREMIUM + 15.12 jet$FLIGHT_DURATION -0.73 jet$PITCH_ECNONOMY

Analysis